The UAE and Ukraine have reached a significant milestone with the finalization of the terms of a Comprehensive Economic Partnership Agreement (CEPA). This agreement marks a pivotal step in the UAE’s ambitious goal to elevate the value of non-oil foreign trade to AED4 trillion by 2031.
Dr. Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, and Yulia Svyrydenko, Ukraine’s First Deputy Prime Minister and Minister of Economic Development and Trade signed the joint statement on Monday.
Once implemented, the UAE-Ukraine CEPA aims to enhance bilateral trade by removing or reducing tariffs on key product lines and eliminating unnecessary barriers to trade. This will facilitate fair market access for exporters from both nations, fostering increased economic cooperation.
Supporting Ukraine’s key sectors
The CEPA will play a vital role in supporting Ukraine’s economic recovery and the rebuilding of key industries and infrastructure. Moreover, it will strengthen supply chains to the Middle East and North Africa (MENA) region, particularly for major Ukrainian exports such as grains, machinery and metals.
For his part, Dr. Al Zeyoudi stated: “Ukraine is a bridge to Europe for our exporters and an important ally in our food security imports.” Moreover, he emphasized the potential for Ukraine’s industrialists and entrepreneurs to expand into growth markets in Asia and Africa through the UAE.
He also stressed that the CEPA will unlock new investment pathways, particularly in sectors such as logistics, manufacturing and IT, while also contributing to the revitalization of the Ukrainian economy. “We look forward toward the ratification of the deal and the new opportunities it will create for the business communities on both sides,” he added.
Meanwhile, Svyrydenko expressed confidence in the opportunities presented by the UAE-Ukraine CEPA. Hence, it underscores its historic significance in bilateral relations. “I am confident that the Ukrainian and Emirati business communities will fully capitalize on the opportunities presented by the Ukraine-UAE CEPA, thereby unlocking the immense potential in our trade and economic cooperation,” she stated.
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Expansion of UAE’s global trading partnerships
In 2023, the non-oil trade between the UAE and Ukraine amounted to $385.8 million. Meanwhile, joint foreign direct investment (FDI) stock stood at $360 million by the end of 2022 across sectors such as logistics and infrastructure, travel and tourism, and advanced technology.
The conclusion of negotiations with Ukraine represents the UAE’s ongoing efforts to expand its network of trading partners across global markets. With 14 CEPA agreements already in place with strategic markets across Africa, South America, Asia and Europe, the UAE continues to strengthen its position as a key player in international trade, covering a significant portion of the world’s population.
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